Correlation Between Vmware and FUJIAN AONONG

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Vmware and FUJIAN AONONG at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Vmware and FUJIAN AONONG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vmware Inc and FUJIAN AONONG BIOLOGICAL, you can compare the effects of market volatilities on Vmware and FUJIAN AONONG and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Vmware with a short position of FUJIAN AONONG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vmware and FUJIAN AONONG.

Diversification Opportunities for Vmware and FUJIAN AONONG

0.18
  Correlation Coefficient

Average diversification

The 3 months correlation between Vmware and FUJIAN is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Vmware Inc and FUJIAN AONONG BIOLOGICAL TECHN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUJIAN AONONG BIOLOG and Vmware is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Vmware Inc are associated (or correlated) with FUJIAN AONONG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUJIAN AONONG BIOLOG has no effect on the direction of Vmware i.e., Vmware and FUJIAN AONONG go up and down completely randomly.

Pair Corralation between Vmware and FUJIAN AONONG

Considering the 90-day investment horizon Vmware Inc is expected to generate 0.33 times more return on investment than FUJIAN AONONG. However, Vmware Inc is 3.01 times less risky than FUJIAN AONONG. It trades about -0.12 of its potential returns per unit of risk. FUJIAN AONONG BIOLOGICAL is currently generating about -0.25 per unit of risk. If you would invest  11,620  in Vmware Inc on June 29, 2022 and sell it today you would lose (767.00)  from holding Vmware Inc or give up 6.6% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy80.95%
ValuesDaily Returns

Vmware Inc  vs.  FUJIAN AONONG BIOLOGICAL TECHN

 Performance (%) 
       Timeline  
Vmware Inc 
Vmware Performance
0 of 100
Over the last 90 days Vmware Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable primary indicators, Vmware is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Vmware Price Channel

FUJIAN AONONG BIOLOG 
FUJIAN Performance
0 of 100
Over the last 90 days FUJIAN AONONG BIOLOGICAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

FUJIAN Price Channel

Vmware and FUJIAN AONONG Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Vmware and FUJIAN AONONG

The main advantage of trading using opposite Vmware and FUJIAN AONONG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vmware position performs unexpectedly, FUJIAN AONONG can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FUJIAN AONONG will offset losses from the drop in FUJIAN AONONG's long position.
Vmware vs. Kibush Capital Corp
The idea behind Vmware Inc and FUJIAN AONONG BIOLOGICAL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
FUJIAN AONONG vs. CHONG QING CHANGAN
FUJIAN AONONG vs. CHONG QING CHANGAN
FUJIAN AONONG vs. LAOBAIXING PHARMACY CHAIN
FUJIAN AONONG vs. AIER EYE HOSPITAL
Check out your portfolio center. Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

Other Complementary Tools

Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go